The Central Bank of Nigeria has revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc. This regulatory action reinforces the apex bank’s commitment to financial system stability and stronger compliance within Nigeria’s mortgage banking subsector.
The decision was taken under the powers granted to the CBN by BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria. It forms part of broader efforts to reposition the mortgage industry and strengthen confidence in the financial system.
Why the Licences Were Revoked
The affected institutions were found to have fallen significantly short of regulatory expectations. Key issues identified include:
• Failure to meet the minimum paid up share capital requirement
• Insufficient assets to meet outstanding liabilities
• Capital adequacy ratios below prudential minimum levels
• Persistent noncompliance with regulatory directives
These weaknesses posed material risks to depositors, counterparties, and the overall stability of the financial system.
What This Means for the Financial Sector
This action sends a clear message to all financial institutions. Capital strength, sound risk management, and regulatory compliance are not optional. The CBN is demonstrating zero tolerance for practices that undermine market confidence and systemic stability.
For investors and stakeholders, this move highlights the importance of strong governance frameworks and regulatory discipline in sustaining long term growth in Nigeria’s financial sector.
Looking Ahead
The Central Bank of Nigeria has reaffirmed its commitment to safeguarding the financial system and promoting a resilient, transparent, and well capitalised banking environment. Institutions operating within the mortgage and broader financial services space are expected to align fully with regulatory standards and best practices.
